Nazara Technologies’ board on Monday approved issuing Nikhil and Nithin Kamath, the founders of Zerodha, shares worth Rs 100 crore. With this development, the company’s shares increased 10.53% to a 52-week high of Rs 839.15.
Nazara Technologies provided specifics of this significant share issuance in a regulatory filing. The company plans to issue up to 14,00,560 shares for Rs 99,99,99,840 at an issue price of Rs 714 per equity share.
The two partnership firms, Kamath Associates and NKSquared, represented by Nikhil Kamath and Nithin Kamath, will receive these shares.
A six-month lock-in period will be applied to these shares after the date of issuance.
According to Nazara Technologies, the fresh capital of Rs 100 crore will be used for various purposes, including funding needs, pursuing growth objectives, strategic acquisitions, and investments.
Commenting on the investment, Nitish Mittersain, CEO at Nazara Technologies, expressed his appreciation for Nikhil Kamath’s involvement. He said, “Nikhil Kamath symbolizes success in India’s tech arena, and this fund raise holds immense value for us at Nazara as we continue to build a diversified gaming platform in India. Beyond the funds raised, his investment stands as a resounding vote of confidence in Nazara.”
This is Nazara Technologies’ second attempt to raise funds in just two months. The company decided to raise funds in July by issuing equity shares and was permitted to increase its authorized share capital from Rs 30 crore to Rs 50 crore.
